VAT Calculator
Add VAT or GST to a net price, or remove it from a gross total — with the net, VAT and gross broken out.
How it works
Add: VAT = net × rate, gross = net + VAT · Remove: net = gross ÷ (1 + rate)
VAT (value-added tax) and GST work the same way arithmetically as US sales tax: multiply to add it, and divide by (1 + rate) to back it out of a tax-included total. Subtracting the rate straight from a gross figure over-removes the tax, because the tax was charged on the smaller net amount. The only real difference from US sales tax is administrative — VAT is collected at each stage of the supply chain rather than once at the final sale.
Worked example
Adding 20% VAT to a $100 net price gives $20 VAT and a $120 gross price. To remove VAT from a $120 gross total, divide: 120 ÷ 1.20 = $100 net, so the VAT was $20 — not the $24 you would wrongly get by subtracting 20% of $120.
Frequently asked questions
Is VAT the same as US sales tax?
The math is identical — multiply to add it, divide by (1 + rate) to back it out. The difference is administrative: VAT and GST are collected at each stage of the supply chain, while US sales tax is charged once at the final sale.
How do I remove VAT from a gross price?
Divide the gross amount by (1 + rate) rather than subtracting the percentage. A $120 total at 20% VAT is 120 ÷ 1.20 = $100 net, so the VAT is $20. Subtracting 20% of 120 would wrongly give $96.
What VAT rates are common?
Standard rates range widely — 20% in the UK, 19% in Germany, 10% GST in Australia, 5% in the UAE. Many countries also apply reduced rates to essentials such as food and books.
Related calculators
Educational estimate, not financial advice.